Total of 373.7 Billion Won(Approximately 3.7 Billion USD) in Subsidy for the New Renewable Energy R&D project in Korea

07/30/2012

Total of 373.7 Billion Won(Approximately 3.7 Billion USD) in Subsidy for the New Renewable Energy R&D project in Korea

Establishment and implementation of Ministry of Knowledge Economy’s new energy execution plan for the year 2012.

Ministry of Knowledge Economy recently disclosed the New Renewable Energy execution plan for the year 2012. According to the execution plan, the target export volume for this year when it comes to the New Renewable Energy was set for 8.61 Trillion Won while 3.55 Trillion Won was set for the investment from the private sector. Meanwhile, the plan set the target of hiring 16,000 people, and presented four strategies and 23 sub projects to carry out for each strategy in order to realize the goal. The four strategies set and announced by the Ministry of Knowledge Economy include; strategic R&D and pursuit of commercialization, promotion for industrialization and market creation, industrialization for export and detailed implementation plan for strengthening the base for the growth of the companies.

Ministry of Knowledge Economy confirmed and announced the execution plan for the development, use and distribution of the New Renewable Energy technology for the year 2012 (hereafter, ‘execution plan)’ on June 13.
According to the execution plan, government offices such as Ministry of Knowledge Economy, Education Ministry, Ministry for Food, Agriculture, Forestry and Fisheries, Ministry of Environment, Ministry of Land, Transport and Maritime Affairs, Rural Development Administration, Korea Forest Service and others provided subsidy of 1.1539 Trillion Won in 2011 for the growth of the New Renewable Energy areas through projects for distribution and R&D.
Encouraged by this type of government support, amount of investment made by the private sector was increased by 6.6 times from 0.7 Trillion Won in 2007 to 4.65 Trillion Won in 2011. During the same period, amount of exports grew by 9.7 times from 0.71 Trillion Won to 6.92 Trillion Won while number of people hired increased by 4.2 times from 3,600 people to 15,000 people.

In this execution plan, the following goals for the year 2012 were set for the New Renewable Energy area; 8.61 Trillion Won for exports, 3.55 Trillion Won in private sector investment, and employment for 16,000 people. To realize the above mentioned goals, four strategies and 23 detailed implementation projects were suggested.

Strategic R&D and pursuit of commercialization
In 2012, total of 373.7 Billion Won will be provided for the R&D of the New Renewable Energy; 227.3 Billion Won by the Ministry of Knowledge Economy, 0.29 Billion Won by the Education Ministry, 0.06 Billion Won by the Ministry for Food, Agriculture and Forestry and Fisheries, 0.773 Billion Won by the Ministry of Environment, 0.1354 Billion Won by the Ministry of Land, Transport and Maritime Affairs, 0.0799 Billion Won by the Rural Development Administration, and 0.126 Billion Won by the Korea Forest Service.

In particular, focus will be placed on the projects that will ensure joint growth of the large and small and medium sized companies, creation of synergy effect through cooperation among pan-government offices, securing of source technology, and on actual commercialization.

Working level team will be formed and operated for the strengthened linkage and cooperation among the pan-government offices for the New Renewable Energy R&D. Moreover, joint pan-government office mega project will be discovered actively for the creation of synergy effect in the New Renewable Energy area.

Moreover, equipment will be installed in a full-fledged manner at six regions which were selected as the test bed during June of last year, and the clustering of the related companies’ R&D facilities will be induced.

Promotion of industrialization and market creation
One million green homes will be built until 2020 by replacing the energy used in houses with the PV energy, solar thermal, geothermal heat and others.
Ten green projects and large scale ocean wind power complex development are pursued. System level base (RFS) is provided as well to ensure increased distribution of the New Renewable Energy in the transport area.

Effort will be made to ensure establishment of the RPS system, which will be conducted starting from this year. The pioneering role of the public institutions in the New Renewable Energy distribution area will be strengthened while households that consume electricity in many ways will be targeted for the increased expansion of the sun light houses. Towards this end, ‘Project for the Home Filled with Sun Light’ will be pursued. Moreover, the plan will encourage adoption and expansion of the voluntary donation that entails companies providing marginalized people with New Renewable Energy facility.

Promotion of the industrialization for exports
The nation will be turned into the nation that leads New Renewable Energy technology while strategic cooperation activities will be unfolded. Cooperation among the private and public sector will be strengthened to lay down the base for the industrialization for exports.

Support will be provided to install equipment to carry out performance test on the wind turbine that is at least 5MW which faces competition for enlargement world-wide. The strategy is to increase discovery and distribution of the New Renewable Energy 36.5° product that one can feel easily in everyday life in order to make the general public more familiar with the product. Meanwhile the strategy is to pursue after industrialization for exports.

Strengthening of the foundation for company growth
Guarantee fund will be operated through the trust guarantee funds to provide effective financial loan to New Renewable Energy companies, and the plan is to complement the shortcomings related to the tax support for the New Renewable Energy projects.

Industry advancement strategy by each source of New Renewable Energy will be developed, and improvement of the regulation on the land wind power position at the pan-government office level will be pursued continually as well.
Meanwhile, Kim Jun-dong, the official in charge of the energy policy in the face of weather change said in relation to the execution plan development, “New Renewable Energy is an important alternative for solving two problems at once; depletion of fossil fuel and the green-house gas issue. As such, it is a valuable energy source that can increase the self-sufficiency ratio for the energy in Korea.” Meanwhile, he also emphasized that “the plan is to cultivate the industry into the Korean foodstuff industry of the future while contributing to the stabilization of mid to long term power supply which is emerging as an issue these days through cooperation among pan-government offices and synergy effect creation.”

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